4Q10 Results Presentation

February, 10, 2010

01

Disclaimer

The Company makes forward looking statements that are subject to risks and

uncertainties. These statements are based on the beliefs and assumptions of our

management as well as on information currently available to us. Forward-looking

statements include information regarding our current intent, beliefs or expectations, in

addition to those of the members of the Board of Directors and Executive Officers of the

Company.

Forward-looking statements also include information regarding our possible or assumed

future operating results, as well as statements preceded or followed by, or that include,

the words ''believes”, ''may”, ''will”, ''continues”, ''expects”, ''anticipates”, ''intends”,

''plans”, ''estimates”, or similar expressions.

Forward-looking statements are not guarantees of performance. They involve risks,

uncertainties and assumptions, for they relate to future events, thus depending on

circumstances that may or may not occur. Our future results and the creation of value to

shareholder s may differ significantly from those expressed in or suggested by these

forward-looking statements. Many factors determining these results and values are

beyond Cielo’s ability to control or predict

02

Highlights

4Q10

Increase of 20.4% in Transaction Financial Volume in relation to 4Q09, reaching R$ 74.1 billion

Net Revenue + Prepayment of Receivables growth of 11.7% reaching 1,148 billion; growth of 0.9% in relation to3Q10;

Adjusted EBITDA growth of 2,2% in relation to 4Q09, reaching R$ 716 million;

Net Income growth of 0.6% in relation to 4Q09, reaching R$ 444.5 million;

Launching unprecedented mobile payment application in Brazil for iPhone, iPad and iPod Touch;

Partnership with Good Card, JCB, CrediSystem, Cabal, Verocheque, CBA, Banestes e Dotz.

2010

Increase of 22.3% in Transaction Financial Volume in relation to 2009, reaching R$ 262.0 billion

Net Revenue + Prepayment of Receivables growth of 20.0% reaching R$ 4,354.4 million;

Adjusted EBITDA Growth of 19.4% reaching R$ 2,926 million;

Net Income growth of 19.1% in relation to 2009, reaching R$ 1,831million

Cielo is elected “ Company of Value 2010” by Valor Econômico, and ranked as one of the best placesto work bt Exame Magazine for the 10th consecutive year.

03

Macroeconomic Scenario- Brazil

1 2

3 4

5.7

3.24.0

6.15.1

-0.2

7.3

4.5

2004 2005 2006 2007 2008 2009 2010(E)2011(E)

GDP Growth ( %)

Source: IBGE(E) Market Estimative- Inflation Report - BCB

5

6

7

8

9

10

11

12Unemployment Rate- %

Source: IBGE

41% 44% 45% 46% 43% 44% 40%59%56%

55%

54%

57%56%

60%

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

0

200

400

600

800

1.000

1.200

1.400

1.600

2004 2005 2006 2007 2008 2009 dec/10

Credit/GDP (%)Credit (R$million)

Credit Evolution

Individuals Legal Entities Credit/GDP

499607

733

936

1,227

1,414

1,704

Source: BCB

9.9

0

2

4

6

8

10

12

14

16

18Retail Trade Sales - %

Source: IBGE

04

Cards Market- Brazil

4

21

17,1%18,9%

20,7%22,5% 23,2%

2006 2007 2008 2009 2010*

Penetration Of Cards as Means of Payment in the Private Consumption Expenditure (PCE)

Source: ABECS e IBGE( data available until October)

388

453

514565

628

565

628

2006 2007 2008 2009 2010 4Q09 4Q10*

Number of Cards Issued (million)

Source: Abecs(*) ABECS Estimates

CAGR 12,8%

11,1%

245

302

375

444

539

131158

2006 2007 2008 2009 2010 4Q09 4Q10*

Volume Growth ( R$ Billion)

CAGR 21,8%

20,8%

Source: Abecs(*) ABECS Estimates

69,0 71,974,9 77,5 81,3 83,8 83,8

2006 2007 2008 2009 2010 4Q09 4Q10*

Average Ticket (R$/Transaction

(*) ABECS Estimates ( credit and debit only)

4,6%

05

Cielo – Financial and Operating Highlights

Financial Highlights 4Q10 4Q09 4Q10 X 4Q09 2010 2009 2010 x 2009

Financial Transaction Volume (R$ million) 74,079.9 61,553.3 20.4% 261,957.6 213,957.6 22.4%

Number of Transactions (million) 1,108.3 962.7 15.1% 4,038.7 3,426.8 17.9%

Net Operating Revenue (R$ million) 1,147.9 1,027.2 11.8% 4,354.4 3,627.8 20.0%

Total Cost of Services (R$ million) (354.6) (251.4) 41.1% (1,180.8) (936.3) 26.1%

Total Cost of Services excluding Subsidiaries and Additional brands fee (R$ million)(318.3) (245.1) 29.9% (1,118.5) (917.4) 21.9%

Operating Expenses ( R$million) (130.4) (118.7) 9.8% (441.0) (401.1) 10.0%

Adjusted EBITDA (R$ million) 716.0 700.6 2.2% 2,925.9 2,450.7 19.4%

Net Income (R$ million) 444.5 442.0 0.6% 1,830.9 1,536.7 19.1%

Total Net MDR (bps) 110 125 (15) 119 124 (5)

Credit Net MDR (bps) 132 150 (18) 142 149 (7)

Debit Net MDR (bps) 77 84 (7) 80 81 (1)

Operating Highligths 4Q10 4Q09 4Q10 X 4Q09

Active Merchants in 60 Days (thousand) 1,140 1,133 0.6%

Active Merchants in 180 Days (thousand) 1,586 1,207 31.4%

Total POS (thousand) 1,619 1,630 -0.7%

Installed POS (thousand) 1,277 1,343 -4.9%

06

Cielo – Operating Performance

1 2

3

1.142 1.4021.720 2.003

2.333

549 621

836987

1.232

1.424

1.716

414 487

2006 2007 2008 2009 2010 4Q09 4Q10

Cielo- Number of Transactions ( million)

Credit Debit

CAGR: 19.5%

15.1%

1,9782,389

2,952

3,427

963 1,108

4,039

71.197 87.966 110.897

134.792 162.933

37.961 44.917

39.552 48.534

64.655

79.166

98.742

23.592 29.163

2006 2007 2008 2009 2010 4Q09 4Q10

Cielo Transactions - Financial Volume ( R$ million)

Credit cards Debit cards

110,749136,500

175,552

213,958

61,55374,080

CAGR: 24.0%

20.4%

261,675

716

872

1,055

1,207

1,586

679

824

996

1,133 1,140

2006 2007 2008 2009 2010

Cielo - Number of Active Merchants (thousand)

Active Merchants ( transactions in the last 180days) Active Merchants ( transactions in the last 60 days)

1 2

3 4

07

Cielo – Revenues Performance

3,3% 4,6% 3,9% 3,4% 3,9% 3,0% 5,5%0,0% 0,0% 0,5% 4,5% 7,5% 5,2% 8,6%27,6% 27,8% 27,9% 26,4% 24,3% 24,7%

21,7%

14,7% 15,0% 16,0% 15,8% 16,3% 17,4% 17,7%

54,4% 52,6% 51,6% 49,9% 48,1% 49,8% 46,5%

2006 2007 2008 2009 2010 4Q09 4Q10

Revenue- Activity ( %)

Other revenues Prepayment of Receivables POS Rental Debit cards Credit cards

1.945,1

2.402,2

2.892,9

3.627,8

4.354,4

1.027,2 1.147,9

2006 2007 2008 2009 2010 4Q09 4Q10

Net Revenue ( R$ million)

11.7%

CAGR 22.3%

596,0

745,9

903,1

1.067,1 1.169,9

282,0 275,5

2006 2007 2008 2009 2010 4Q09 4Q10

Equipment Rental Revenue (R$ million)

-2.3%

CAGR: 18.4%

1.175,91.409,3

1.666,92.012,0

2.317,8

569,2 590,8

317,1401,3

517,9

637,9

785,4

198,4 225,1

2006 2007 2008 2009 2010 4Q09 4Q10

Commissions Revenue

Credit Debit

1,493.0

1,810.7

2,184.8

2,649.9

3,103.3

767.6

CAGR 20.1%

13.4%

3.8%

815.8

08

Cielo – Prepayment of Receivables1

2 3

82.2%

2.009,42.193,3

2.460,42.669,6

3.016,7

5,3% 5,8% 6,3%6,4%

6,7%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

-

500,0

1.000,0

1.500,0

2.000,0

2.500,0

3.000,0

3.500,0

4Q09 1Q10 2Q10 3Q10 4Q10

Prepayment of Receivables

Financial prepayment volume

% Antecipação s/ Volume Financeiro de Crédito

61,8

66,1

69,7

72,0

66,1

4Q09 1Q10 2Q10 3Q10 4Q10

Average Term (days)

65,5 73,3

97,1

113,3119,4

4Q09 1Q10 2Q10 3Q10 4Q10

Revenue of Prepayment of Receivables ex Adjustments ( R$ million)

09

Cielo – Total Costs Of Service and Operating Expenses

1

690,2771,0

851,1936,3

1.180,8

251,4354,6

2006 2007 2008 2009 2010 4Q09 4Q10

Total Costs of Service ( R$ million)

CAGR 14.4%

41.1%

351,5 353,9

427,4 401,1441,0

118,7 130,4

2006 2007 2008 2009 2010 4Q09 4Q10

Operating Expenses (R$ million)CAGR 5.8%

9.8%

3

2

354.6 300.6

251.4

31.6 22.4

4Q10 Reported Costs Related to Subsidiary

( Orizon and M4U)

Additional brands fee

4Q10 Adjusted 4Q09

Costs (R$million)

Unit Cost 4Q10 4Q09 3Q09 4Q10 X 4Q09 4Q10 X 3Q10

Unit Cost Reported (0.320) (0.261) (0.306) 22.5% 4.7%

Unit Cost excluding subsidiaries ( Orizon adn M4U) (0.291) (0.255) (0.291) 14.5% 0.3%

Unit Cost excluding subsidiaries and Additional brands fee* (0.271) (0.255) (0.276) 6.6% -1.5%

* Considering 4Q09 as comparison

19.6%

10

Cielo – Financial Performance

Adjusted EBITDA (R$ million) 1 2Net Income (R$ million)

657,9

883,9

1.115,3

1.536,7

1,830.9

34%

37%39%

42% 42%

25,00%

30,00%

35,00%

40,00%

45,00%

50,00%

55,00%

60,00%

0,0

200,0

400,0

600,0

800,0

1.000,0

1.200,0

1.400,0

1.600,0

1.800,0

2.000,0

2006 2007 2008 2009 2010

Net Income

442,0

444.5

43%

39%

25,00%

30,00%

35,00%

40,00%

45,00%

50,00%

55,00%

60,00%

441,0

441,5

442,0

442,5

443,0

443,5

4Q09 4Q10Net Income Margin

700,6

71668%

62%

45,00%

50,00%

55,00%

60,00%

65,00%

70,00%

690,0

695,0

700,0

705,0

710,0

715,0

720,0

4Q09 4Q10

Adjusted EBITDA Margin

1.038,8

1.409,5

1.764,3

2.450,7

2,925.9

53%

59%

61%

68% 67%

52,00%

57,00%

62,00%

67,00%

72,00%

0,0

500,0

1.000,0

1.500,0

2.000,0

2.500,0

3.000,0

3.500,0

2006 2007 2008 2009 2010

Adjusted EBITDA

11

Cielo – New Competitive LandscapeFinancial Highlights 4Q10 3Q10 4Q10 X 3Q10

Financial Transaction Volume (R$ million) 74,079.9 67,256.8 10.1%

Number of Transactions (million) 1,108.3 1,037.7 6.8%

Net Operating Revenue (R$ million) 1,147.9 1,137.4 0.9%

Total Cost of Services (R$ million) (354.6) (317.1) 11.9%

Total Cost of Services excluding Subsidiaries and Additional brands fee (R$ million) (318.3) (301.5) 5.6%

Operating Expenses ( R$million) (130.4) (108.8) 19.8%

Adjusted EBITDA (R$ million) 716.0 761.0 -5.9%

Net Income (R$ million) 444.5 488.5 -9.0%

Total Net MDR (bps) 110 121 (11)

Credit Net MDR (bps) 132 146 (14)

Debit Net MDR (bps) 77 79 (2)

Operating Highligths 4Q10 3Q10 4Q10 X 3Q10

Active Merchants in 60 Days (thousand) 1,140 1,147 -0.6%

Active Merchants in 180 Days (thousand) 1,586 1,250 26.9%

Total POS (thousand) 1,619 1,657 -2.3%

Installed POS (thousand) 1,277 1,317 -3.0%

12

Alternative Transaction Services

Healthcare Transportation Loyalty ATM

Emerging Payment Technologies

Traditional Card Transactions

eCommerce Mobile Payments

Credit Debit Prepaid Commercial

Cielo will continue to create new products and drive merchant acceptance by fostering card usage and non-payment transactions

Emerging Payment Transactions: Extend card usage of the traditional POS equipment to emerging technologies - e.g. Visa Mobile Pay and joint venture with Oi

Traditional Card Transactions: Increase the penetration, activation and usage of cards at the point-of-sale - e.g. Debit Activation, B2B transactions,etc

Alternative Transaction Services: Leverage processing infrastructure and customer base to process other types of transactions - e.g. Orizon

Strategic Approach

Thank You!

IR Contact:

ri@cielo.com.br